re: Buying another car prior to BK-13

[simon2020]

Hi All,

I am thinking of filing for BK-13 within the next 2-3 months.

I have an old car that still runs but its life is coming to an end soon. More to fix than to just buy a better running car.

Should I trade in my old car for another one prior to filing BK-13 or after?

I heard somewhere that there is a "Car payment allowance" exemption and this expense would lower my income.

Any comments/opinions on this issue?

Thanks.

[woeisme]

BEFORE, BEFORE, BEFORE!!!! Don't wait, it is REALLY hard to finance a car in an active CH 13, and of course there is the aspect of lowering your trustee payment because some of the disposable income is going to car payment. Get a newer car ASAP, it needs to last 3-5 years, depending on how long your CH 13 is.

[liz417]

Yes! Our attorney advised us to purchase a new/good used car to last throughout our 5 year plan. My truck was a 1995 and had over 240k miles on it. Get a new/used car before your credit goes south!

Good Luck!

[Nicollette]

I wish my attorney would have advised me of this

[simon2020]

Do you think I should go to a dealer or Carmax? I heard there are deals to be found now that the auto companies are desperate to move cars off their lot.

Anyone heard of any car companies out there with some good incentives for me to take advantage of?

[rjl0206]

just got an 09 pilot for invoice price, plus free gas card with dealership gas for one month. all I downed was the taxes. high apr. of 11.2 though because I am in THAT spot already. came out to $636/month 6 years, I got the OK from my attorney as long as he saw i got 3 invoices from 3 dealerships showing I went for the best/lowest deal I could. so at least that will be a minus $636 from my dmi and towards a new car.

PS: both of my old cars were paid off which I would have to try and exempt anyway, so got rid of the oldest one and took this one.

Ray

[Michigan42]

I'm in the same boat. So, its not considered fraud to finance a car just prior to filing ch 13? I've got an old car & found a good used one. I'm trying to keep the payment under $250.00/mo.

[mb1966]

im thinking the same thing. I have an 05 mustang that im about 5k upside down on but it has close to 80k miles on it. I am planning on filing within a month or so and thought about getting a new truck....would this be ill advised?

[BigJohn]

You should have no problem.

[mb1966]

ok, cool. I had askeb my att during the initial consultation and he said it would probably be ok. The only thing would be instead of cramming the car down i would just reaffirm on the new vehicle and pay whatever pymt and interest rate i got when i bought it. So im guessing that the new car pymt if figured in to your household expenses when figuring your bk pymt right? I hope that all of this wouldnt be happening too soon to me filing. I just went to my att last thursday (5th) and he told me to go ahead and quit paying my cc and other unsecured bills, so i did. the only thing is that alot have been due the first of this month, and if i get a new truck this week and file within the next week or two....will that look suspicious? Or is there really not any certain waiting period you should wait from the purchase of the new vehicle and when you start the process of bk?

[Michigan42]

How do you go about getting a loan if your credit is bad or slow-pay? I guess thats the rub?

[liz417]

ok, cool. I had askeb my att during the initial consultation and he said it would probably be ok. The only thing would be instead of cramming the car down i would just reaffirm on the new vehicle and pay whatever pymt and interest rate i got when i bought it. So im guessing that the new car pymt if figured in to your household expenses when figuring your bk pymt right? I hope that all of this wouldnt be happening too soon to me filing. I just went to my att last thursday (5th) and he told me to go ahead and quit paying my cc and other unsecured bills, so i did. the only thing is that alot have been due the first of this month, and if i get a new truck this week and file within the next week or two....will that look suspicious? Or is there really not any certain waiting period you should wait from the purchase of the new vehicle and when you start the process of bk?

We were told to get a new car too, but to make 1 or 2 payments on it, then file for ch 13 and pay the vehicle outside our plan.

Good Luck!